05.05.2006

Genie first quarter sales rise 49%

The Genie or aerial work platform business segment of Terex, which now covers both aerial lifts and telehandlers, reported a 49 percent increase in revenues to $458 million, for the first quarter to the end of March 2006.

Margins also rebounded very strongly to the levels that Genie was used to prior to the commodity increases of 2004-5. Gross profits more than doubled to $117 million or 25.5 percent of sales, compared to $53.8 and 17.5 percent in the same period of 2005. Operating income as a result increased by 275 percent to $80 million.

The company’s order book rose from $514 million to $660 million, although when compared to revenues, this shows a slight easing in delivery times from almost five months to just over four months.

"Our first quarter performance was outstanding" said Bob Wilkerson, president of Terex Aerial Work Platforms. "Our sales were up almost 50 percent and our backlog was up approximately 29 percent when compared to the first quarter of 2005, clearly highlighting the continued strong demand for our products. In addition to the excellent financial performance of our aerial product lines, our telehandler product line posted year over year revenue increases in excess of 65%, and our light construction and trailer businesses also posted stronger operating performances." Wilkerson continued,

"However, as mentioned previously, we continue to closely watch various component cost pressures, mainly steel. The cost of steel has begun to increase in the first quarter, similar to the trends we saw in 2004. Our ability to mitigate this pressure is vital to continued improvements in our future operational performance."

"During 2005, we revisited our pricing structure. This, along with continued improvements in our factories, has delivered results that more reflect the demand environment in which we find ourselves. The first quarter performance demonstrates our ability to perform and meet demand, and we remain optimistic about our continued positive performance throughout 2006 and into 2007."

The first quarter results, for the Terex group as a whole, show group revenues up by 21 percent on 2005 to €1.75 billion.

Gross margins improved dramatically pushing gross profit up by 53 percent, while net income almost tripled form $29.9 million to $80.6 million.